Thursday, September 17, 2009

Fixing the Fairgrounds

Politics, recession, and a vision that hasn't caught fire.

Henry Turley has been called a visionary developer in his 40-year
career in real estate, but his vision of the old Mid-South Fairgrounds
is looking increasingly less likely.

An alternative option — call it the public option, in today's
parlance — would have many of the sports elements as Turley's
proposal but with a quarterback combo of architect and former city
councilman Tom Marshall and Housing and Community director Robert
Lipscomb.

On Monday, Turley conceded that he has "no votes" on the Memphis
City Council, which will have the final say on which proposal, if any,
moves ahead. Among other problems, Turley was out-politicked. Council
members and city division directors are friendly to boards and agencies
such as the Riverfront Development Corporation and the Center City
Commission on which they have representation.

Turley's proposal, called Fair Ground LLC, was chosen as developer
last year by the city's appointed fairgrounds reuse committee chaired
by Cato Johnson. Former Mayor Willie Herenton confirmed the selection,
but his endorsement was never clear even before he left office in
July.

In other words, Turley has the half-blessing of an unpopular former
mayor and an appointed committee. Backing like that, along with $1,
will get you a cup of coffee in Memphis.

Marshall, on the other hand, is a former colleague of interim Mayor
Myron Lowery and chief administrative officer Jack Sammons. He had a
reputation as an adept compromiser during his nearly two decades on the
council. Lipscomb and Marshall have worked closely together on the
stalled Bass Pro/Pyramid proposal, and Marshall's firm had a contract
with Memphis City Schools under former Superintendent Carol Johnson to
do a facilities needs study and design new schools.

Last week, FedEx CEO Fred Smith gave his blessing to the
Marshall-Lipscomb fairgrounds plan, and The Commercial Appeal
gave it front-page coverage. Turley was "stunned."

Turley (a stockholder in the investment group and member of the
board of directors of Contemporary Media Inc., the parent company of
the Memphis Flyer) is the co-developer of Harbor Town, South
Bluffs, Uptown, and other downtown projects. His Fair Ground
partnership includes Art Gilliam, Robert Loeb, Derrick Mashore, Eliot
Perry, and Mark Yates.

Both proposals envision a grand entrance on East Parkway, add acres
of grass, and keep Liberty Bowl Memorial Stadium. Turley would use any
sales tax increment in stadium revenue above a base number for general
fairgrounds improvement. If attendance remains flat or falls, there
would be no increment.

The public option includes housing on the fairgrounds property but
the kind and amount are not specified. Turley's plan has no housing
"because we do not want to compete with housing in the surrounding
neighborhoods and because we believe the entire Fair Ground should
encourage public use."

Turley's proposal includes at least $50 million in "national brand"
hotels and retailers such as Target. Small-scale retail, he said, would
harm existing Midtown stores and restaurants. Under a financing plan
known as a Tourism Development Zone (TDZ), the sales taxes from new
development would be used for $75 million in public improvements.
Target already has several stores in greater Memphis, and dedicated tax
streams mean less tax money for someone else in the recession. The
financing of the Lipscomb-Marshall plan is vague, but Lipscomb has
backed a TDZ for Bass Pro at the Pyramid and Triangle Noir south of
Beale Street.

Youth sports and athletic facilities are central to both proposals.
The Kroc Center, financed in large part by a grant from McDonald's
founder Ray Kroc, has a piece of property on the west side of the
fairgrounds. Neither proposal makes a strong case that additional
sports facilities beyond that would be competitive with new mega-fields
for soccer and baseball or older playing fields like the ones at the
fairgrounds and behind the board of education offices nearby.

The Coliseum eventually comes down in both proposals. Turley said
two weeks ago he would replace it with an indoor multi-sports building.
Marshall's firm, O.T. Marshall and Associates, drew up futuristic plans
for an indoor stadium and covered facilities on the fairgrounds more
than 30 years ago. The current plan is to make the fairgrounds greener
and cleaner as soon as possible.

Turley said he and his partners have invested $277,000 cash and
5,000 hours of work so far. He said the last city-developed public
space was Mud Island River Park, which loses money and is closed half
the year. Lipscomb (and now Herenton) said Turley's fees are too
high.